[Federal Register Volume 68, Number 158 (Friday, August 15, 2003)]
[Notices]
[Pages 48893-48896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20862]


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DEPARTMENT OF ENERGY


Notice of Intent To Prepare an Environmental Impact Statement for 
the Colorado Springs Utilities Next-Generation CFB Coal Generating 
Unit, Fountain, CO

AGENCY: Department of Energy.

ACTION: Notice of intent.

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SUMMARY: The U.S. Department of Energy (DOE) announces its intent to 
prepare an Environmental Impact Statement (EIS) pursuant to the 
National Environmental Policy Act (NEPA), the Council on Environmental 
Quality (CEQ) NEPA regulations (40 Code of Federal Regulations [CFR] 
parts 1500-1508), and the DOE NEPA regulations (10 CFR part 1021) to 
assess the potential environmental impacts of a project proposed by 
Colorado Springs Utilities to design, construct, and operate a Next-
Generation Circulating Fluidized Bed (CFB) Coal Generating Unit 
demonstration plant near Fountain, El Paso County, Colorado. The plant 
is proposed for a site adjacent to the existing 227 megawatt (MW) Ray 
D. Nixon Power Plant on the Clear Springs Ranch, a 5,000-acre Colorado 
Springs Utilities-owned property located approximately 17 miles south 
of Colorado Springs.
    The proposed project, selected under the Clean Coal Power 
Initiative solicitation, would demonstrate advanced technologies to 
produce electricity using a variety of fuels, including subbituminous 
coal from the Powder River Basin (PRB) in Wyoming, which would provide 
the primary fuel for long-term operation of the plant, bituminous coals 
from Illinois and Pennsylvania, and blends of PRB coal with waste coal 
and wood waste. Colorado Springs Utilities would also consider 
combusting several other fuels, including waste tires and processed 
municipal solid waste sludge, in blends with the PRB coal. Technologies 
to be integrated into the proposed plant would include a circulating 
fluid-bed combustion system to achieve low emissions of sulfur oxides, 
an advanced staged-combustion process to achieve low nitrogen oxide 
levels, an advanced selective non-catalytic reduction system to further 
reduce nitrogen oxide emissions, and a low-cost, integrated trace metal 
control system having potential to remove virtually all acid gases and 
up to 90% of mercury from the combustion gas. Upon completing a 
successful demonstration of the advanced technologies, the new CFB unit 
would be operated as a commercial power plant to supply approximately 
150 MW of electricity to the Colorado Springs Utilities power grid.
    The EIS will help DOE decide whether to provide 10% (approximately 
$30 million in financial assistance) of the total estimated cost of 
$301 million for the proposed project. The purpose of this Notice of 
Intent is to inform the public about the proposed project; invite 
public participation in the EIS process; announce the plans for a 
public scoping meeting and explain the EIS scoping process; and solicit 
public comments for consideration in establishing the proposed scope 
and content of the EIS.

DATES: To ensure that all of the issues related to this proposal are 
addressed, DOE invites comments on the proposed scope and content of 
the EIS from all interested parties. Comments must be received by 
September 19, 2003, to ensure consideration. Late comments will be 
considered to the extent practicable. In addition to receiving comments 
in writing and by telephone, (See ADDRESSES below), DOE will conduct a 
public scoping meeting in which agencies, organizations, and the 
general public are invited to present oral comments or suggestions with 
regard to the range of actions, alternatives, analysis methods, and 
environmental issues to be considered in the EIS. The scoping meeting 
will be held at the Fountain Middle School, 515 North Santa Fe Avenue, 
Fountain, CO, on September 3, 2003, beginning at 7 pm (See ``Public 
Scoping Process''). The public is invited to an informal session at 
this location beginning at 5 pm to learn more about the proposed 
action.
    Displays and other forms of information about the proposed agency 
action and the demonstration plant will be available, and DOE personnel 
will be present at the informal session to discuss the proposed project 
and the EIS process.

ADDRESSES: Written comments on the proposed EIS scope and requests to 
participate in the public scoping meeting should be addressed to the 
NEPA Document Manager for the CFB Generating Unit project (hereafter 
termed the ``Project''): Mr. Lloyd Lorenzi, National Energy Technology 
Laboratory, U.S. Department of Energy, P.O. Box 10940, Pittsburgh, PA 
15236-0940.
    Individuals who would like to otherwise participate in the public 
scoping process should contact Mr. Lloyd Lorenzi directly by telephone: 
412-386-6159; toll free number for recording messages: 1-800-276-9851; 
fax: 412-386-4604; or electronic mail: [email protected].

[[Page 48894]]


FOR FURTHER INFORMATION CONTACT: For information regarding the Project 
or to receive a copy of the draft EIS for review when it is issued, 
contact Mr. Lloyd Lorenzi as described above. Those seeking general 
information on the DOE NEPA process, contact: Ms. Carol M. Borgstrom, 
Director, Office of NEPA Policy and Compliance (EH-42), U.S. Department 
of Energy, 1000 Independence Avenue, SW., Washington, DC 20585-0119, 
Telephone: (202) 586-4600, Facsimile: (202) 586-7031, or leave a toll-
free message at 1-800-472-2756.

SUPPLEMENTARY INFORMATION:

Background and Need for Agency Action

    Since the early 1970s, DOE and its predecessor agencies have 
supported research and development programs for a wide variety of 
innovative coal technologies through the proof-of-concept stage. 
However, the availability of a technology at the proof-of-concept stage 
is not sufficient to ensure continued development and subsequent 
commercialization. Before any technology can be considered seriously 
for commercialization, it must be demonstrated. The financial risk 
associated with technology demonstration is, in general, too high for 
the private sector to assume in the absence of strong incentives. The 
Clean Coal Power Initiative (CCPI) was established in 2002 as a 
government/industry partnership to implement the President's National 
Energy Policy recommendation to increase investment in clean coal 
technology. That recommendation addresses a national challenge of 
ensuring the reliability of electric supply while simultaneously 
protecting the environment.
    The goal of the CCPI program is to accelerate commercial deployment 
of advanced coal technologies that provide the United States with 
clean, reliable, and affordable energy. Through cooperative agreements 
established pursuant to the CCPI program, DOE would accelerate 
deployment of innovative technologies to meet near-term energy and 
environmental goals; to reduce technological risk to the business 
community to an acceptable level; and to provide private sector 
incentives required for continued activity in innovative research and 
development directed at providing solutions to long-range energy supply 
problems.

Proposed Action

    The proposed action is for DOE to provide, through a cooperative 
agreement with Colorado Springs Utilities, financial assistance for the 
proposed Project. The CFB Generating Unit to be constructed under the 
Project would be designed for long-term commercial operation following 
completion of an approximately 12-month period of operation to 
demonstrate performance of advanced technologies under the cooperative 
agreement with DOE. The cost of the Project is approximately $301 
million; DOE's share would be approximately $30 million (10%).
    The CFB Generating Unit would produce approximately 150 MW of 
electricity, at extremely high environmental performance levels, for 
export to the local grid. The primary fuel for the plant would be 
subbituminous coal from the Powder River Basin (PRB) in Wyoming. During 
the demonstration phase of operation for DOE, other fuels would be 
tested, including bituminous coals from Illinois and Pennsylvania and 
blends of PRB coal with waste coal and forest biomass (non-commercial 
timber removed during forest thinning and fire risk reduction 
activities on National Forest lands). Colorado Springs Utilities would 
also consider combustion of PRB coal in blends with other fuels, 
including pelletized or shredded rubber from waste tires and processed 
sludge from wastewater treatment activities of Colorado Springs 
Utilities, to demonstrate the range of environmental performance 
capabilities of the advanced CFB generating unit.
    The CFB generating unit would be constructed on an approximately 
10-acre site adjacent to the existing 151-acre Ray D. Nixon Power 
Plant, which has been operating since 1980. The existing power plant 
features a 227 MW pulverized coal-fired boiler using PRB coal, two 35 
MW combustion turbines, a coal storage area, and coal handling 
facilities. All facilities for the new CFB Unit would be located on the 
5,000-acre Clear Springs Ranch property that Colorado Springs Utilities 
owns and uses for power generation, ash disposal, wastewater treatment, 
and land application sludge disposal. Site preparation would require 
grading, clearing of vegetation, and the addition of infrastructure 
improvements, such as roads, fencing, and drainage. Construction 
preparations would include installation of foundations for the plant 
equipment and structures.
    The CFB Generating Unit would feature an advanced staged-combustion 
process that can achieve low nitrogen oxide levels, and an advanced 
selective non-catalytic reduction system that can further reduce 
nitrogen oxide emissions. Limestone would be added to the combustion 
furnace for sulfur removal. The CFB Generating Unit would also include 
a three-stage system for sulfur oxide control to achieve up to 98 
percent sulfur removal. Requirements for limestone, which would be the 
only reagent added to the combustion furnace for sulfur control, would 
be reduced to less than half the amount required by conventional CFB 
systems.
    In addition to the advanced sulfur oxide and nitrogen oxide control 
technologies, the low emission combustion system would feature an 
integrated trace metal control system with potential to remove 
virtually all acid gas emissions and up to 90 percent of mercury from 
the combustion gas. The CFB generating unit would include an advanced 
system for solids separation, whereby solids separators would be 
integrated into the traditional furnace structure to reduce cost and 
improve reliability. This design would allow reduced size of the 
overall combustion system and eliminate hot expansion joints, thus 
potentially achieving improved operational performance and reduced 
maintenance costs.
    The primary feed material for the new CFB Unit would be up to 
approximately 2,200 tons-per-day of subbituminous coal that would be 
delivered to the site using the existing rail loop and coal handling 
facilities. Coal would be stored in the same coal storage area that is 
currently serving the Nixon Power Plant, though a separate conveyor 
would be constructed to service the CFB Unit.
    Construction of the proposed plant would take approximately 36 
months. Plant start-up, system and feedstock testing, and long-term 
performance and reliability demonstration under the cooperative 
agreement with DOE would require approximately 12 months, after which 
the plant could continue in commercial operation.

Alternatives

    NEPA requires that agencies evaluate the reasonable alternatives to 
the proposed action in an EIS. The purpose for agency action determines 
the range of reasonable alternatives.
    The Clean Coal Power Initiative (CCPI) was established to help 
implement the President's National Energy Policy (NEP) recommendation 
to increase investment in clean coal technology by addressing national 
challenges of ensuring the reliability of domestic electric and energy 
supplies while simultaneously protecting the environment. The CCPI 
program was structured to achieve NEP goals by promoting private sector 
initiatives to invest in demonstrations of advanced

[[Page 48895]]

technologies that could be widely deployed commercially to ensure that 
the United States has clean, reliable, and affordable energy. Private 
sector investments and deployment of energy systems in the United 
States places DOE in a more limited role than if the Federal government 
were the owner and operator of the energy systems. In the latter 
situation, DOE would be responsible for a comprehensive review of 
reasonable alternatives for siting the system. However, in dealing with 
applicants under the CCPI solicitation, the scope of alternatives is 
necessarily more restrictive, because DOE must give substantial 
consideration to the applicant's needs, as reflected in its CCPI 
application, in establishing a project's reasonable alternatives.
    The range of reasonable alternatives to be considered in the EIS 
for the Project is determined in accordance with the overall NEPA 
strategy. Because of DOE's limited role of providing cost-shared 
funding for the Project, DOE currently plans to give primary emphasis 
to the proposed action and the no-action alternative. Under the 
proposed action, Project activities would include equipment design and 
fabrication, process engineering, plant permitting and construction, 
and testing and demonstration of the technology. Under the no-action 
alternative, DOE would not provide partial funding for the design, 
construction, and operation of the plant.
    In the absence of DOE funding, the new CFB Unit may be constructed, 
but likely would not include demonstration of operation with the range 
of fuel sources that has been proposed. In the absence of DOE funding, 
Colorado Springs Utilities could also consider building a natural gas 
combustion turbine plant at the Clear Spring Ranch Site. This 
alternative will be examined in the EIS. DOE will consider other 
reasonable alternatives that may be suggested during the public scoping 
period.
    DOE plans to complete the EIS within 15 months following 
publication of this Notice of Intent, and to issue a Record of Decision 
no sooner than 30 days following completion of the Final EIS. Upon 
completing the demonstration effort for DOE, Colorado Springs Utilities 
could continue commercial operation of the new CFB Unit constructed 
under the Project.

Preliminary Identification of Environmental Issues

    The following environmental issues have been tentatively identified 
for analysis in the EIS. This list is presented to facilitate public 
comment on the planned scope of the EIS, and is not intended to be a 
pre-determined set of potential impacts. Additions to or deletions from 
this list may occur as a result of the public scoping process. The 
environmental issues include:
    (1) Atmospheric resources: Potential air quality effects resulting 
from emissions during construction and operation of the proposed CFB 
Unit;
    (2) Water resources: Potential effects on surface water and 
groundwater resources, including effects of water usage, wastewater 
management, and storm water management;
    (3) Aesthetic and scenic resources: Visual effects associated with 
plant structures and operations;
    (4) Ecological resources: Potential on-site and off-site impacts to 
vegetation, terrestrial wildlife, threatened and endangered species, 
and ecologically sensitive habitats, including the Fountain Creek 
riparian corridor and the Clear Springs Ranch Wildlife Management area;
    (5) Land use requirements and compatibility for disposal of power 
plant ash;
    (6) Noise: Potential effects resulting from construction and 
operation of the proposed plant and from transportation of feed 
materials and plant products;
    (7) Health and safety impacts, including construction-related 
safety and process-related safety associated with handling and 
management of chemical materials;
    (8) Socioeconomic effects resulting from influx of construction 
laborers and plant operating staff;
    (9) Soils and geology compatibility for plant construction and ash 
disposal;
    (10) Utility and transportation infrastructure requirements for 
delivery of fuels and chemicals to the power plant;
    (11) Resource utilization;
    (12) Cumulative effects that result from the incremental impacts of 
the proposed plant when added to the other past, present, and 
reasonably foreseeable future activities, including the adjacent Nixon 
Power Plant and the nearby recently-completed Front Range Power Plant;
    (13) Connected actions associated with recovery of other fuels, 
including wood waste, and feed materials for the plant; and
    (14) Regulatory compliance and environmental monitoring.

Public Scoping Process

    To ensure that all issues related to this proposal are addressed, 
DOE will conduct an open process to define the scope of the EIS. The 
public scoping period will end on September 19, 2003. Interested 
agencies, organizations, and the general public are encouraged to 
submit comments or suggestions concerning the content of the EIS, 
issues and potential impacts to be addressed in the EIS, and 
alternatives that should be considered. Scoping comments should 
identify specific issues or topics that the EIS should address in order 
to assist DOE in identifying significant issues for analysis. Written, 
e-mailed, or faxed comments should be communicated by September 19, 
2003 (See ADDRESSES).
    DOE will conduct a public scoping meeting at the Fountain Middle 
School, 515 North Santa Fe Avenue, Fountain, CO, on September 3, 2003, 
at 7 pm. In addition, the public is invited to an informal session 
beginning at 5 pm, to learn more about the proposed action. Displays 
and other information about the proposed agency action and the 
demonstration plant will be available, and DOE personnel will be 
present to discuss the proposed action and the NEPA process.
    The formal scoping meeting will begin on September 3, 2003, at 7 
pm. DOE requests that members of the public who wish to speak at this 
public scoping meeting contact Mr. Lloyd Lorenzi, either by phone, fax, 
computer, or in writing (See ADDRESSES in this Notice).
    Members of the public who do not arrange in advance to speak may 
register at the meeting (preferably at the beginning of the meeting) 
and will be provided opportunities to speak following previously 
scheduled speakers. Speakers who need more than five minutes should 
indicate the length of time desired in their request. Depending on the 
number of speakers, DOE may need to limit speakers to five minutes 
initially but will provide additional opportunities as time permits. 
Speakers may also provide written materials to supplement their 
presentations. Oral and written comments will be given equal 
consideration.
    DOE will begin the meeting with an overview of the proposed 
Project. The meeting will not be conducted as an evidentiary hearing, 
and speakers will not be cross-examined. However, speakers may be asked 
questions to help ensure that DOE fully understands their comments or 
suggestions. A presiding officer will establish the order of speakers 
and provide any additional procedures necessary to conduct the meeting.


[[Page 48896]]


    Issued in Washington, DC, on this 11th day of August, 2003.
Beverly A. Cook,
Assistant Secretary, Environment, Safety and Health.
[FR Doc. 03-20862 Filed 8-14-03; 8:45 am]
BILLING CODE 6450-01-P